Entrepreneurs in Minnesota might benefit from learning more about some of the factors involved in identifying properties capable of supporting the operations of a business. There are several variables for business owners to consider before signing a contract to lease a building or facility. Each enterprise has a unique set of priorities that the property will need to fulfill in order to sustain long-term profitability.
Organizing a list of pros and cons for each selection may be the most effective way to evaluate the available options. When an owner reviews the terms of the contract, deciding whether the leasing terms and rent are favorable is often one of the first factors to consider. Business owners are also responsible for determining whether the property is properly zoned for the enterprise’s intended function. Safety risks and the overall condition of the facility may also be a top priority in identifying potential sites for a new operation.
Owners may need to consider any improvements and construction that might be required to bring the building up to code or functioning properly. Sometimes, landlords will be responsible for providing the funds for any such activity that is required. Utilities and wiring may need to be checked before the facility is worth serious consideration. Identifying potential liability issues may be the most prudent approach when reviewing potential sites for the new business.
Most owners enlist the services of legal counsel before finalizing the terms of any lease agreements. Lawyers can review the provisions of the agreement in order to ensure there is no language that could have adverse effects on the enterprise’s long-term interests or profitably. Legal counsel can also help business owners negotiate financing and other agreements.
Source: FindLaw, “Choosing a Facility Checklist“, accessed on April 1, 2015
This information is general in nature and should not be construed as tax or legal advice.